Hedge funds run by legendary names like Nelson Peltz and David Tepper make billions of dollars a year for themselves and their super-rich accredited investors (you’ve got to have a minimum of $1 million liquid to invest in a hedge fund) by spending enormous resources on analyzing and uncovering data about small-cap stocks that the big brokerage houses don’t follow. Small caps are where they can generate significant out-performance. These stocks have been on a tear since the end of June, outperforming large-cap index funds by more than 10 percentage points. That’s why we pay special attention to hedge fund activity in these stocks.
Shenandoah Telecommunications Company (NASDAQ:SHEN) was in 11 hedge funds’ portfolios at the end of September. SHEN investors should be aware of an increase in support from the world’s most successful money managers recently. There were 8 hedge funds in our database with SHEN positions at the end of the previous quarter. The level and the change in hedge fund popularity aren’t the only variables you need to analyze to decipher hedge funds’ perspectives. A stock may witness a boost in popularity but it may still be less popular than similarly priced stocks. That’s why at the end of this article we will examine companies such as Petrobras Argentina SA ADR (NYSE:PZE), Barracuda Networks Inc (NYSE:CUDA), and The E.W. Scripps Company (NYSE:SSP) to gather more data points.
At Insider Monkey, we’ve developed an investment strategy that has delivered market-beating returns over the past 12 months. Our strategy identifies the 100 best-performing funds of the previous quarter from among the collection of 700+ successful funds that we track in our database, which we accomplish using our returns methodology. We then study the portfolios of those 100 funds using the latest 13F data to uncover the 30 most popular mid-cap stocks (market caps of between $1 billion and $10 billion) among them to hold until the next filing period. This strategy delivered 18% gains over the past 12 months, more than doubling the 8% returns enjoyed by the S&P 500 ETFs.
Keeping this in mind, we’re going to take a glance at the key action encompassing Shenandoah Telecommunications Company (NASDAQ:SHEN).
How have hedgies been trading Shenandoah Telecommunications Company (NASDAQ:SHEN)?
Heading into the fourth quarter of 2016, a total of 11 of the hedge funds tracked by Insider Monkey were bullish on this stock, a change of 38% from one quarter earlier. The graph below displays the number of hedge funds with bullish position in SHEN over the last 5 quarters. So, let’s find out which hedge funds were among the top holders of the stock and which hedge funds were making big moves.
According to Insider Monkey’s hedge fund database, Renaissance Technologies, one of the largest hedge funds in the world, holds the largest position in Shenandoah Telecommunications Company (NASDAQ:SHEN). Renaissance Technologies has a $34 million position in the stock, comprising 0.1% of its 13F portfolio. The second largest stake is held by Mario Gabelli of GAMCO Investors, with a $4.3 million position; less than 0.1% of its 13F portfolio is allocated to the company. Some other members of the smart money that are bullish encompass Cliff Asness’s AQR Capital Management, and Roger Ibbotson’s Zebra Capital Management. We should note that none of these elite funds are among our list of the 100 best performing elite funds which is based on the performance of their 13F long positions in non-microcap stocks.